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Bitcoinist 2025-12-26 09:30:21

Crypto’s High-Stakes Corner Booms As Derivatives Trading Soars To $86 Trillion

According to a report by liquidation tracker CoinGlass, cryptocurrency derivatives trading hit roughly $85.7 trillion in 2025, an average of about $264 billion a day. That surge put derivatives back at the center of crypto activity and left a clear imprint on markets worldwide. Market Concentration And Exchange Share Binance handled roughly $25 trillion of that volume, or about 29% of global derivatives trading. OKX, Bybit and Bitget each posted between $8 trillion and $10 trillion, and the four of them together controlled about 62% of the market. Based on reports , that level of concentration means a handful of platforms still drive most of the action, and any major hiccup at one of them can ripple through other venues fast. Crypto: Institutional Pathways Expanded Trading moved beyond retail bets. Spot ETFs listed in the US, options desks and compliant futures helped mainstream venues such as the Chicago Mercantile Exchange gain ground. The CME had already overtaken Binance in Bitcoin futures open interest in 2024, and it consolidated that position through 2025. More institutions started using derivatives for hedging and basis trades rather than pure speculation. That change pushed pricing patterns to look more like traditional markets, even as new risks built up under the surface. Open Interest And Market Swings Open interest began the year near a low of about $87 billion after a broad round of deleveraging in the first quarter. It then climbed through the middle of the year and reached a record $236 billion on October 7. An abrupt reset in early Q4 wiped out more than $70 billion in positions — roughly one-third of the open interest at the time. Even after that shock, year-end open interest stood at $145 billion, a 17% rise from where the year began. Bitcoin Price Action Meanwhile, Bitcoin’s price has yet to breach the $90k level, trading at $89,950 at the time of writing. US-listed spot Bitcoin ETFs, on the other hand, recorded net outflows, weakening what some had called the institutional bid. A record-sized Bitcoin options expiry landed on Friday, Dec 26, and several analysts argued it kept price pinned in a tighter band — at least for a while. Sentiment gauges stayed on the gloomy side, with many investors showing caution despite broader product access and more regulated routes to trade. Forced Liquidations Total forced liquidations across the year were estimated at about $150 billion. A big portion of the pain came on Oct. 10 and Oct. 11, when more than $19 billion was erased in just two days. The data for 2025 shows a market that has grown in size and in institutional involvement, while also carrying structural tensions. Trading volumes and product variety have increased, but so have the paths that can transmit shocks. Featured image from FXLeaders, chart from TradingView

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